Google Inc.

Case 3. - Google Inc.

Synopsis: The case provides an overview of Google’s strategy and organization as of early 2006. The case recounts Google’s early history and explains it “paid search” business model. Also discussed are Google’s distinctive governance structure, corporate values, and process for managing innovation all which have significant influence on choices about strategy. Google’s innovative approach allows engineers to spend 20% of their time working on a project of their own choice. The rest of the case reviews Google’s recent strategic initiatives which are organized into 4 categories: 1) efforts to improve web search; 2) expansion beyond WWW into new search domains; 3) enhancements to advertising services; and 4) launching an array of new software tools, for example, Gmail.

The case also discusses how Yahoo!, Microsoft and eBay have responded to threats posed by Google. The final section asks “what should Google do next?” Focus on its core business, diversify, challenge Microsoft by developing software, serve as ecommerce intermediary like eBay.

 Answer the following questions:

1. What were the key factors behind Google’s early success?

2. Do you expect the search business to become concentrated (dominated by fewer firms)? Is search a winner-take-all business?

3. In addition to enhancing its core search business, should Google also branch out into new arenas? Which of the following would you recommend: 1) building a full-fledged portal like Yahoo!’s; 2) targeting Microsoft’s desktop software hegemony; 3) becoming an e-commerce intermediary like eBay or something else. Support your recommendations with specific reasons/rationale.

4. Is Google’s unique organization and culture strength or liability. Can others easily copy Google’s

...